Page 9 - Book7E

CHAPTER 1
Reading Your Credit Report
If you’ve ever applied for a credit card, a personal loan, or insurance, it probably comes as no surprise that there’s a file about you. It’s called your credit report, and it’s packed with information about where you live, how you pay your bills, and whether you’ve been sued, arrested, or filed for bankruptcy. Consumer reporting companies sell the informa- tion in your report to creditors, insurers,
employers, and other businesses with a legitimate need for it. They use the infor- mation to evaluate your applications for credit, insurance, employment, or a lease.
You can consider your credit report as
your financial report card because it details
your credit history as it has been report-
ed to the credit reporting bureaus by
lenders who have extended credit to you. Your credit report lists what types of credit you use, the length of time your accounts have been open, and whether you’ve paid your bills on time.
The Financial Impact of Your Credit Score
A credit score is a three-digit number, generally ranging from 300 to 850. A score of 760 to 850 would be considered excellent. Having a good credit score means it will be easier for you to get loans and lower
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"When a person has no need to borrow, he finds multitudes will- ing to lend."
—Oliver Goldsmith